Mon July 30, 2012
Inheritance tax phase out costing counties money
Tippecanoe County is bracing for the loss of a revenue source.
The county is preparing as the state begins to phase out the inheritance tax.
The tax is reduced ten percent for each of the next nine years.
Eventually the county no longer will receive that money.
Treasurer Bob Plantenga says this could result in losing hundreds-of-thousands-of-dollars.
“About $400,000 is what we normally get in a year. We usually budget for $300,000, we get somewhere in the $400,000 range," he said. "So now in 2013, I'm estimating that to be $100,000 and I think moving forward our estimate needs to be zero.”
The General Assembly passed a law this year to phase out the tax.
Plantenga says to make up for the reduction in revenue the county is going to have to consider cuts.